Mammoth Q4 Loss Projection
Mammoth Energy Services based in Oklahoma City doesn’t anticipate much change in the fourth quarter this year as it believes losses will be about the same as reported in the just-finished third quarter.
However, analysts expect continued volatility around Oklahoma Energy cost structures.
Therefore, risk premiums remain stubborn in the broader service cycle.
In Mammoth’s 10-Q filing with the Securities and Exchange Commission, the firm stated “During the fourth quarter of 2025, we expect to generate an adjusted EBITDA loss from continuing operations ranging from $2.0 million to $3.0 million based on our current portfolio of assets.”
Additionally, the operational tone signals a cautious fourth quarter.
EBITDA and revenue with industry compression
The company recorded adjusted EBITDA in the third quarter totaling $4.4 million compared to $2.9 million in the third quarter of 2024.
Also, its revenue for the most recent third quarter fell $2.3 million or 13% from a year earlier.
Meanwhile, Mammoth blamed much of the loss as “primarily attributable to a decrease in natural sand proppant services and accommodations revenue.”
Therefore, investor sensitivity around completions remains elevated across service peers.
Puerto Rico backlog litigation still unresolved
Eight years after Mammoth Energy responded to the 2017 Hurricane Maria which devastated Puerto Rico it remains in legal claims and has yet to be paid $20 million by the Puerto Rico Electric Power Authority.
Additionally, Mammoth crews helped in the restoration of electrical power to the nation.
The crews were employees of Mammoth subsidiary Cobra Acquisitions LLC.
PREPA reached a settlement agreement with Cobra last year but has yet to make the final payment.
Finally, that unresolved receivable pressure affects long-tailed cash flow modeling.
PREPA bankruptcy process controls final recovery
“Pursuant to the terms of the Settlement Agreement, PREPA paid Cobra approximately $168.4 million in 2024 and, as of September 30, 2025, PREPA owes Cobra $20.0 million, which is payable within seven days following the effective date of PREPA’s plan of adjustment in its bankruptcy proceedings,” according to Mammoth’s quarterly SEC filing.
However, PREPA remains behind schedule.
More new lawsuits add exposure risk pressure
Meanwhile, Cobra was hit with 14 lawsuits from municipalities in Puerto Rico alleging failure to pay construction excise and volume of business taxes.
Additionally, in one case, Puerto Rico’s Court of Appeals revoked another court order that instructed PREPA to withhold a $9 million to Cobra.
On May 16, 2025 and May 20, 2025, the Court entered judgment against Cobra in connection with two of the lawsuits in the amount of $5.1 million and $1.6 million, respectively, plus interest, penalties and attorneys’ fees.
Separately, the Court entered judgment against Cobra in connection with another lawsuit on July 3, 2025, in the amount of $3.4 million.
Finally, the May 16, 2025 and May 20, 2025 judgments were appealed to the Court of Appeals, which denied the appeals on June 30, 2025.